Neelam Rahim | neelam@radioislam.co.za

2-minute read
26 March 2023 | 22:40 CAT

Image: News24

While service delivery is almost non-existent in many Mpumalanga municipalities, it has emerged that in most provinces’ municipalities, nearly 60% of budgets go straight to salaries and perks for officials and councillors. The DA’s provincial spokesperson on Cogta, Trudie Grovè-Morgan, says that according to circular 71 of the Municipal Finance Management Act, which sets out a range of uniform financial norms and ratios for municipal entities, municipalities should spend between 25% and 40% of their total operating expenditure on employee-related costs and councillor allowances.

Speaking to Radio Islam International, Trudie said it was found that workers do not work most of the day but rather after hours and receive more overtime pay than their standard salary rate.

Nkomazi Local Municipality spent more than 50% on employee costs and councillor allowances. According to Trudie, the rural municipality should have looked at the most significant needs struggling with huge infrastructure backlogs, high unemployment rates and a lack of water.

Regarding the use of consultants, MFMA Circular 71 provides a norm of 2% – 5%. However, despite this, the Section 131 MFMA report notes that the average spending by all local municipalities in Mpumalanga for contracted services made up 11% of the total expenditure of R9 117 billion for 2020/21.

Meanwhile, the Mpumalanga head of Cogta Samkelo Ngubane told City Press that municipalities found themselves in this quagmire because they approved budgets not funded by cash.

“An indication that people are appointed to senior positions without the necessary expertise,” says Trudie.

The DA wrote to CoGTA MEC, Mandla Msibi, requesting that he ensure municipalities stick to the prescribed Circular 71 of the MFMA and reduce their spending on employee-related costs, councillor allowances, and spending on contracted services.